On Monday 25 March 2024, Bitcoin surged to touch $71000 before experiencing a pullback, only to soar to a high of $71,419.17 by Tuesday morning.
Currently, the cryptocurrency is trading at $70955.86. BTC has undergone significant volatility over the past couple of weeks, hitting an all-time high of nearly $74000 earlier in the month.
It experienced dips alongside stock market fluctuations following news of higher-than-expected inflation in February. Additionally, a flash crash on the BitMEX exchange led to a plunge in price to as low as $62000.
However, the cryptocurrency has largely rebounded from these setbacks as traders prepare for the upcoming bitcoin halving scheduled for April.
This event, dictated by pre-set rules in Bitcoin’s code, occurs roughly every four years and involves halving the block reward distributed to Bitcoin miners. Presently, miners receive 6.25 BTC for successfully adding a block to the blockchain, but this will decrease to 3.125 BTC around April 19.
Historically, halvings have sparked bullish trends for BTC, with price surges occurring several months afterward and often reaching new highs. Further contributing to the price fluctuations in 2024 is the introduction of multiple U.S. spot Bitcoin ETFs, which have been acquiring BTC supplies in anticipation of the halving.
This influx of demand has played a role in propelling the price to record highs ahead of the halving, a phenomenon unprecedented in Bitcoin’s history.
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